Article
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IR4.0 Readiness Model for Small and Medium Enterprises (SMEs)
Version 1
: Received: 2 August 2024 / Approved: 2 August 2024 / Online: 3 August 2024 (08:14:39 CEST)
How to cite: Saleh, N. I. IR4.0 Readiness Model for Small and Medium Enterprises (SMEs). Preprints 2024, 2024080205. https://doi.org/10.20944/preprints202408.0205.v1 Saleh, N. I. IR4.0 Readiness Model for Small and Medium Enterprises (SMEs). Preprints 2024, 2024080205. https://doi.org/10.20944/preprints202408.0205.v1
Abstract
The Industrial Revolution 4.0 (IR4.0) is transforming the global economy, necessitating mall and medium-sized enterprises (SMEs) to adopt new technologies like artificial intelligence (AI), the Internet of Things (IoT), blockchain, and cloud computing. Therefore, SMEs need to assess their readiness to identify capabilities and areas for improvement to remain competitive. However, existing IR4.0 readiness assessment such as the Industry4WRD Readiness Assessment and Industry 4.0-Readiness by IMPULS German are time-consuming and restrict the participation of various sectors. Using the understanding of theories such as Technology Acceptance Model (TAM), Unified Theory of Acceptance and Use of Technology (UTAUT), Technology Readiness Index (TRI), and Diffusion Of Innovation (DOI), this study developed an initial research model that identifies the dimensions of IR4.0 readiness; (i) organization, (ii) data, (iii) infrastructure, (iv) analytics, and (v) IT, development and operations. This study carried out qualitative methods through four different phases. The first phase is a systematic literature review, and data collection through participant observation (PO) in IR4.0 skills training programs, seminars, and workshops. The second phase is the development of an initial research model to identify the dimensions of IR4.0 readiness that will be used in the next phase. The third phase is a survey on SME’s IR4.0 readiness via the IR4.0 e-Readiness Checker (IR4.0 eRC) readiness assessment system, which produces the final research model, IR4.0 SME Readiness Model. In the fourth phase, the IR4.0 Readiness Model is confirmed for use by SMEs in Malaysia through interviews with three industry experts in Malaysia. Based on the 50 responses in the IR4.0 eRC evaluation, the average IR4.0 readiness of SMEs is 66%, and only 10 SMEs with less than 50%, showing room and improvement opportunities for the continuous research and development of IR4.0 transformation. This study developed IR4.0 readiness model for SMEs to assess readiness for IR4.0 transformation, support investments in IoT projects and employee upskilling programs.
Keywords
Digital Transformation; IR4.0; Self-Readiness; Diffusion of Innovation; SMEs
Subject
Business, Economics and Management, Human Resources and Organizations
Copyright: This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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